Greentoe - overhyped and be careful

Their own website features "testimonials" from the customers who say they saved 25-30% off going market price.

So, I try the first product. Sony 35 /1.8 OSS. Lens sells on Amazon for $448 and quite often there are $398 sales. I figure 20% off $448 is $358, offer them $370. They emailed me that I am way too low and offered it for $419. A whopping 7% savings and most likely a return headache if there's any problem with decentering or what not.

Then I try another product. Sigma 19/2.8, currently on sale at B&H for $169. I offer $140. The reply - "we're overwhelmed at the time, please hang tight, will get back within 24 hours".

Here's the kicker... you can't delete your offer once posted. And you're under obligation to buy your item if your offer is accepted. So, now I have to wait for a day, and my offer is active for two more days, in the meantime the sale at B&H may end or they will run out of stock.

So, be careful and plan ahead... not saying it's a bad service - but know what you're getting into. Make sure you can wait the required 3 days and won't miss the window of opportunity with other vendors.

Using Google shopping I could not find any other authorized Sony dealer offering that lens for less than $448 at the present time. So exactly what are you so upset about that you felt the need to "warn" everyone? I mean sure, I get upset at the high cost of gear, too. But I don't think any authorized retailer is making 20% margin on camera gear anymore, especially when you factor in free shipping and liberal return policies.

According to an NYU study, the average net margin for consumer electronics is between 5.5-7.78%. So you're basically complaining that Greentoe found you an authorized dealer who would sell you the lens for next to zero net profit.

bumpintheroad wrote in post #17921020
Using Google shopping I could not find any other authorized Sony dealer offering that lens for less than $448 at the present time. So exactly what are you so upset about that you felt the need to "warn" everyone? I mean sure, I get upset at the high cost of gear, too. But I don't think any authorized retailer is making 20% margin on camera gear anymore, especially when you factor in free shipping and liberal return policies.

According to an NYU study, the average net margin for consumer electronics is between 5.5-7.78%. So you're basically complaining that Greentoe found you an authorized dealer who would sell you the lens for next to zero net profit.

Greentoe advertises 25-30% savings on lenses right on their website.

Amamba wrote in post #17920973
Make sure you can wait the required 3 days and won't miss the window of opportunity with other vendors.

Don't wait the three days. Go into where you made your offer and change your offer to $0.00. I'll bet no one gives you one for free.

Another thing is that you choose how long the offer is valid for between 2 to 7 days... so you chose the 3 days. They're just holding you to your word...

Thanks, I have thought of lowering my offer if that's doable.

I don't quite remember choosing 3 days vs 2 or 7 - there was a "I can wait a bit longer vs pay more" kind of setting but I don't recall the option to set the number of days. Anyway, will see if it allows me to lower my bid.

Amamba wrote in post #17921025
Greentoe advertises 25-30% savings on lenses right on their website.

So either they are grossly exaggerating the potential savings - to the tune of 3x - or the study you're referring to is lying.

It was a customer's review that made the 25-30% claim. Sure, maybe Greentoe could/should pick a different customer review to present, but what you're presenting isn't an accurate portrayal either.

I don't think your title is fair as it was your expectation that was overhyped based on another customer's experience. I've had excellent results with Greentoe which I learned about from the large thread here with many satisfied members. Market price is a relative term not concrete. It depends how you define advertised market price vs. street price and the respective popularity or availability of the particular item. They always send a message or even call telling you what price they can get immediately. Obviously, if you're lower they suggest you raise your offer. I've always replied thanks and held my ground. No reason to cancel my offer because that's the price I committed to pay and I'll be happy to get it. They also won't have any vendors if customers can back out because they changed their mind. It's true they will contact you everyday while your offer is active. That can be expected with the broker format and at least you know a human is trying to close the deal for their sake and yours. Stick to your guns and your offer will either be accepted or expire, then you can try again. If you need a lens both immediately and at the lowest possible price, the broker model is not a good way to shop. But if you have time and flexibility you can see what Greentoe can arrange for you. Remember it is a small team of people who need to pay bills and feed themselves too from a small percentage of your offer. If there's no margin left between you and the vendor, they can't be in business.

Wow, that is a particularly ridiculous OP. Check out the very lengthy Greentoe thread for plenty of info about how the service works.

The only thing that I'll add that hasn't already been said is that I've consistently gotten between 8-15% off when I've used Greentoe and most of my kit was purchased there. You can't seriously expect more than that. Quick tip: check out grey market and used prices for the gear you're wanting and if you expect to get a brand new one for less than that, you need to change your expectations. More than likely, you're lucky to get grey market or used prices for new gear.

pat.kane wrote in post #17921260
It was a customer's review that made the 25-30% claim. Sure, maybe Greentoe could/should pick a different customer review to present, but what you're presenting isn't an accurate portrayal either.

BS. The review - even if it was made by a real customer - is prominently displayed on their web page and is part of their marketing campaign. Just like any "informercial" you see on TV where someone claims they lost a hundred pounds using product X is part of that product's marketing campaign. Had that claim been done by a user here on POTN, it would be a different story, but when a company makes this part of their web page design, it's a deliberate advertisement not only in my opinion, but in the eyes of the law. In this case, they clearly advertise savings that are 2 to 3 times higher than what they seem to be able to deliver. So "overhyped" was a rather understated and polite characterization of their marketing. I think the term "misleading" would be justified as well.

Anyway, I am not saying don't use them - and yes it appears they do allow you to change your offer to something ridiculously low so you're not bound by the 2-7 days term.

I think the OP is just airing out his sour grapes. Perhaps he is young and sufficiently inexperienced to not understand how the world works.

Just because one customer was able to buy a few items at 25-30% below market price doesn't mean that every item will always be available at that discount. Both their marketing and the study can be correct: one does not preclude the possibility of the other. I can tell you from my experience in retail that margins can be very slim. But occasionally a manufacturer will offer retailers special, unadvertised incentives for exceeding a particular sales volume on specific products, and so the retailer orders, say, fifty 135/2L lenses but only sells forty-nine. They may be willing to take a loss (on top of the manufacturer incentive) on that leftover fiftieth lens to avoid getting caught with stale inventory.

Different manufacturers have different pricing and volume discount models. Supply and demand comes into play. There are a variety of factors that determine whether a reseller can and will sell any specific product for 5% off versus 30% off at any specific time. Just about every sale every advertised says "Up to X% savings," and as long as there's one item sold at x% discount it's not a lie of the rest are sold at lower discounts. This is how the world works and should come as no surprise.

Right now no authorized dealer is advertising the Sony 35/1.8 for less than $448. You searched and searched and failed to find a bargain. Then you turned to Greentoe and they found you someone willing to sell you the lens for $419. Either take the deal or keep looking until your price is matched. Nobody promised you a 25-30% discount on that particular lens.

Based on the testimonial that the OP put up above, only 1 of them mentioned about the 25%-30% discount on the 135mm lens with savings of $125. As far as I know, the going price for the 135F2 is around $900-$1000... and there is no way that $125 is equal to 25% savings. To get that savings, the lens must cost no more than $500 ...

If someone knows where I can get the new with warranty 135F2 for that price (i.e. $500), I will be more than happy to buy it!!! In fact, I will buy several

vilimo wrote in post #17922024
Based on the testimonial that the OP put up above, only 1 of them mentioned about the 25%-30% discount on the 135mm lens with savings of $125. As far as I know, the going price for the 135F2 is around $900-$1000... and there is no way that $125 is equal to 25% savings. To get that savings, the lens must cost no more than $500 ...

If someone knows where I can get the new with warranty 135F2 for that price (i.e. $500), I will be more than happy to buy it!!! In fact, I will buy several

You do realize that a "user testimonial" that is put front and center on company's web page is no longer a testimonial but an advertisement. Right ?

And I am sure you also noticed the fact that this is the only testimonial / advertisement that gives the actual %s saved. If there were three ads giving the range of 7 to 30% that would be different. The fact is, there's only one ad that quantifies savings and it says 25-30%.

They advertise savings that they are typically not able to deliver. Which is a common enough practice. But this doesn't make it any less misleading.

Anyway, my whole issue was the fact that I thought I was locked into the offer for several days, the fact that is stressed in their FAQs. Admittedly I did not realize I could revise it downwards to where it would not lock me into anything. I wouldn't even bother posting about this if it was only the matter of overly optimistic advertising on their part.

bumpintheroad wrote in post #17922002
..
Just because one customer was able to buy a few items at 25-30% below market price doesn't mean that every item will always be available at that discount. Both their marketing and the study can be correct: one does not preclude the possibility of the other..

This is an ages old marketing ploy. Give a small # of your customers extra special discount, then ask all your customers to write about their experience shopping on your site, there's a good chance that the customers who got extra discount will be eager to tell about it. And you don't have to disclose it as a paid advertisement (since there was no prior agreement between you and these customers). I am old enough and know how this works. Not that everyone else isn't doing this.

Again, this was not about inflated claims. This is unfortunately a pretty common marketing scheme and not worth opening a thread about.